{"id":28231,"date":"2018-10-24T11:25:15","date_gmt":"2018-10-24T05:55:15","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=28231"},"modified":"2018-10-24T11:25:15","modified_gmt":"2018-10-24T05:55:15","slug":"cosmetic-repair","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/cosmetic-repair\/","title":{"rendered":"Cosmetic repair"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/opinion\/editorial\/cosmetic-repair\/article24506004.ece\">Cosmetic repair<\/a><\/p>\n<p><strong><u>News:<\/u><\/strong><\/p>\n<ol>\n<li>\u00a0Recently, a group of banks signed an inter-creditor agreement.<\/li>\n<\/ol>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-23466 size-full\" src=\"https:\/\/i0.wp.com\/blog.forumias.com\/wp-content\/uploads\/2018\/07\/what-3.jpg?resize=475%2C432\" alt=\"\" width=\"475\" height=\"432\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/07\/what-3.jpg?w=475&amp;ssl=1 475w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/07\/what-3.jpg?resize=150%2C136&amp;ssl=1 150w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/07\/what-3.jpg?resize=300%2C273&amp;ssl=1 300w\" sizes=\"auto, (max-width: 475px) 100vw, 475px\" \/><\/p>\n<p><u>Important facts:<\/u><\/p>\n<p>2. The move comes after RBI dismantling of all the existing resolution mechanisms, such as the joint lenders\u2019 forum in its 12 February circular<\/p>\n<p>3. The banks include- public sector banks, private sector banks, and foreign banks.<\/p>\n<p><u>4. About Inter-creditor agreements (ICA)<\/u><\/p>\n<ul>\n<li>Inter-Creditor Agreement (ICA) was framed under the aegis of the Indian Banks\u2019 Association<\/li>\n<li>It follows the recommendations of the Sunil Mehta Committee on stressed asset resolution.<\/li>\n<li>Both Bank and NBFC could be part of ICA<\/li>\n<\/ul>\n<p>5. ICA is primarily focused on the \u20b950 crore-\u20b9500 crore and the \u20b9500 crore-\u20b92,000 crore categories.<\/p>\n<p><u>6. The agreement highlighted the following points:<\/u><\/p>\n<ul>\n<li>A majority representing two-third of the loans within a consortium of lenders can now override any objection to the resolution process coming from dissenting lenders.<\/li>\n<li>Minority lenders who suspect they are being short-changed by other lenders can now sale either their assets at a discount to a willing buyer or buy out from other lenders at a premium.<\/li>\n<li>The inter-creditor agreement is aimed at the resolution of loan accounts with a size of Rs 50 crore .<\/li>\n<li>It is part of the \u201cSashakt\u201d plan approved by the government to address the problem of resolving bad loans.<\/li>\n<li>Such an agreement may persuade banks to embark more quickly on a resolution plan for stressed assets.<\/li>\n<li>This is an improvement on the earlier model, which lied solely on the joint lender\u2019s forum to arrive at a consensus among creditors.<\/li>\n<li>It will now be easier for banks to sell stressed assets.<\/li>\n<\/ul>\n<p>7. In the past, Indian banks have been forced by the RBI to recognize troubled assets, but their resolution had remained a challenge.<\/p>\n<p><u>8. Problems in resolving stressed assets:<\/u><\/p>\n<ul>\n<li>Disagreement between joint lenders is the biggest problem in resolving stressed assets.<\/li>\n<li>The absence of buyers who can purchase stressed assets from banks, and the unwillingness of banks to sell their loans at a deep discount to their face value.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Cosmetic repair News: \u00a0Recently, a group of banks signed an inter-creditor agreement. Important facts: 2. The move comes after RBI dismantling of all the existing resolution mechanisms, such as the joint lenders\u2019 forum in its 12 February circular 3. The banks include- public sector banks, private sector banks, and foreign banks. 4. About Inter-creditor agreements&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/cosmetic-repair\/\">Continue reading <span class=\"screen-reader-text\">Cosmetic repair<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-28231","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704748616},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=28231"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28231\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=28231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=28231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=28231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}